Shares close flat as inflation picks up
The stock market ended the week flat after the government announced its latest inflation figures for February.
The benchmark Philippine Stock Exchange index (PSEi) declined by 0.02 percent or 1.12 points to close at 6,881.37 while the wider All Shares slipped by 0.11 percent or 4.68 points to finish at 4,158.54.
Philstocks Financial inc. senior research analyst Japhet Tantiangco said selling pressure weighed on the market on inflation worries after the newest consumer price data was released.
The Philippine Statistics Authority reported on Friday that inflation accelerated to 4.7 percent last month — its highest in more than two years — on elevated pork prices outside Metro Manila.
The figure was higher than January’s 4.2 percent and the year-earlier’s 2.6 percent. It matched the BSP’s 4.7-percent point inflation projection, which was within its 4.3- to 5.1-percent range.
It was also the fastest since December 2018’s 5.1 percent.
Negative sentiment from Wall Street due to the rise in US bond yields expanded to the main index, according to Tantiangco.
The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite Index all fell on
Thursday (Friday in Manila) to 1.1 percent, 1.3 percent and 2.1 percent, respectively.
Net value turnover was below the P7-billion mark at P6.96 billion, indicating waning trading activity.
Foreign funds continued to flee, with net foreign selling reaching P595.7 million.
Regina Capital Development Corp. Managing Director Luis Limlingan echoed Tantiango, noting that the bourse ended relatively flat.
The indices of local sectors finished Friday mixed. Services led gainers at 1.05 percent, while mining and oil slipped the most at 2.45 percent.
Total volume turnover was at 4 billion shares, valued at P7.73 billion.
Decliners edged out advancers, 135 to 87, while 45 securities were unchanged.
WITH A REPORT FROM MAYVELIN U. CARABALLO